Bankruptcy

 

Bankruptcy is the legal process that either reduces, restructures, or eliminates your debts. These laws were written specifically to give people’s whose finances have collapsed, a chance to start over. No matter whether it was from unfortunate circumstance or bad decision-making, Bankruptcy is your way to a financial fresh start.

The most common types of bankruptcy are Chapter 7 and Chapter 13:

Chapter 7


Chapter 13


Basics: A Chapter 7 bankruptcy will discharge most types of unsecured debt.

Basics: In Chapter 13 bankruptcy, you repay your creditors (some in full, some in part) through a Chapter 13 repayment plan.




Time Frame: A typical Chapter 7 bankruptcy case takes three to four months to complete.

Time Frame: The Chapter 13 payment plan lasts three or five years (depending on your income). At the end, many of your unsecured debts will be discharged.




Property: Many Chapter 7 debtors keep all or most of their property. Petitioners with significant equity or assets that are not exempt by law could lose them to satisfy some debts.

Property: No property is liquidated under a Chapter 13 bankruptcy.




Your Income: Some high-income earners won't be eligible for Chapter 7.

Your Income: Chapter 13 requires a regular income for the monthly payment.




Homeowners/Foreclosures: Chapter 7 can temporarily stop foreclosure, but unless you can get current on your mortgage, the foreclosure will eventually continue.

Homeowners/Foreclosures: Chapter 13 can stop a foreclosure and you can make up  past due mortgage payments through your repayment plan.




Eligibility: Chapter 7 is available to those whose income is less than the median of their state, or those who can pass the means test.

Eligibility: Chapter 13 has no income requirement, but unsecured debt must be below $394,725 and secured debt below $1,184,200 (as of April 2016).

 

In 2016, the National Bankruptcy Institute (NBI) found that about 95.5% of the 499,909 Chapter 7 case filings were discharged, meaning the individual was no longer legally required to pay their debt.

Most people wait too late to file for bankruptcy. Call us and let us help you start over.



847 N.W. 119TH STREET,
SUITE 202
,
MIAMI, FLORIDA 33166

Telephone: 877.318.2976 / 305.688.7500
Fax: 855.312.0371 / 305.688.7501

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